Has your credit been denied due to issues like past due bills or bankruptcy? It’s crucial that you find a lending company who caters to your level of credit, whatever it may be. For years, we’ve been building a vast network of dealers and finance companies that offer financing to a varied range of Fort Collins residents, not just those with immaculate credit histories. Simply complete your credit application, and you could be driving home your new car in no time flat.
Fort Collins Dealerships That Accept Bad Credit
When you’ve got bad credit, dealer financing is typically the way to go, as most all the banks in the area won’t be willing to do business with you. Then again, there are dealers that want to win your business. Compared with a buy here pay here car lot, such dealerships typically offer:
- Less owed on the day of purchase, in cash or trade.
- Cheaper interest rates.
- Option to rebuild your credit.
The exact models for which you’re qualified will be decided by your monthly income and credit. You should get yourself a vehicle that won’t drain your bank account, having a payment that’s equivalent to 10% of your income or less. For people who make $2,322 a month, the average among Fort Collins residents, this is a payment of $232.
A lending consultant can help you determine how much you can borrow, and at what interest rate. To get started, all you have to do is apply online.
Will You Need a Down Payment?
It’s often necessary to offer money down on the vehicle you want, particularly if you’ve got less-than-perfect credit. A down payment lessens your loan-to-value ratio, which is the amount borrowed in relation to the vehicle’s value–thereby leading to a lower rate of interest.
The good news is, the money from trading in your old car or truck can usually be used toward your down payment, helping you to finance a car without putting down any actual cash.
Fort Collins Buy Here Pay Here Dealerships
For those who have dealt with bankruptcy or debt settlement, a buy here pay here dealer may seem like a good option. Such dealers offer credit lines on the lot, in contrast to regular dealerships which farm this out to one of their affiliated lenders, and they typically don’t reject anyone. Alas, you will be faced with high loan rates, big down payments, and cars and trucks that cost too much given how much mileage and wear they have been through. As if that weren’t a problem, these car lots don’t work with the credit reporting agencies, so you could make all of your payments on a monthly basis without boosting your credit score.
Improving Your Credit in Fort Collins
Besides providing you with the funds you’ll need, an auto loan has the ability to help you get your credit back to normal. But keep in mind, the results aren’t guaranteed. You have to pay off the loan as agreed, making all of your payments on time month after month.
Needless to say, the opposite is likewise a risk: you can make things worse if you don’t keep up with your payments. It’s tricky to say the amount your score will climb, but some credit gurus have reported a 5-10% improvement per month.